GPC Biotech Reports Financial Results for First Quarter 2008
Thursday May 15, 2:36 am ET
-- Cash, cash equivalents, marketable securities and short-term investments of EUR 53.5 million ($84.5 million) as of March 31, 2008
-- Company confirms financial guidance for fiscal year 2008: Cash position expected to support currently planned business operations until approximately end of 2010
MARTINSRIED/MUNICH, Germany & PRINCETON, N.J.--(BUSINESS WIRE)--GPC Biotech AG (Frankfurt Stock Exchange: GPC; NASDAQ: GPCB) today reported financial results for the first quarter and three months ended March 31, 2008.
First quarter 2008 compared to first quarter 2007 as adjusted*
Revenues decreased 58% to € 1.6 million for the first quarter of 2008, compared to € 3.8 million for the first quarter of 2007. The decrease in revenues is primarily due to a decline in payments received under the co-development and license agreement for satraplatin with Celgene Corporation (formerly Pharmion Corporation), as the SPARC Phase 3 trial has been mostly completed. R&D expenses decreased 53% to € 5.7 million for the first three months of 2008 compared to € 12.2 million for the same period in 2007. In the first quarter of 2008, general and administrative (G&A) expenses decreased 63% to € 3.6 million compared to € 9.8 million for the first quarter of 2007. The decrease in R&D and G&A expenses is primarily due to staff reductions and other associated activities as a result of the restructuring plans announced in the second half of 2007 and in the first quarter of 2008 to sharpen the Company’s focus on oncology clinical development efforts and to further reduce costs. Net loss for the first quarter of 2008 improved 60% to € (6.9) million compared to € (17.1) million for the first quarter of 2007. Basic and diluted loss per share was € (0.19) for the first quarter of 2008 compared to € (0.48) for the same quarter in 2007.
As of March 31, 2008, cash, cash equivalents, marketable securities and short-term investments totaled € 53.5 million (December 31, 2007: 65.2 million), including € 1.4 million in restricted cash. Net cash burn for the first quarter of 2008 was € 10.6 million. Net cash burn is derived by adding net cash used in operating activities and purchases of property, equipment and licenses. The figures used to calculate net cash burn are contained in the Company’s unaudited consolidated statements of cash flows for the first quarter ended March 31, 2008.
Quarter over quarter results: first quarter 2008 compared to fourth quarter 2007
Revenues for the first quarter of 2008 decreased 27% to € 1.6 million compared to € 2.2 million for the previous quarter. R&D expenses decreased 41% to € 5.7 million for the first quarter of 2008 compared to € 9.7 million for the fourth quarter of 2007. G&A expenses for the first quarter of 2008 decreased 36% to € 3.6 million compared to € 5.6 million for the previous quarter. The Company’s net loss was € (6.9) million in the first quarter of 2008 compared to € (11.9) million for the previous quarter. Basic and diluted loss per share was € (0.19) for the first quarter of 2008 compared to € (0.32) for the previous quarter.
“We are focused on re-energizing our employees and rebuilding GPC Biotech,” said Bernd R. Seizinger, M.D., Ph.D., Chief Executive Officer. “Our two key areas of activities are advancing our current drug development programs – satraplatin and two pre-clinical kinase inhibitors, RGB-286638 and RGB-344064 - and exploring various merger and acquisition opportunities.”
Torsten Hombeck, Ph.D., Chief Financial Officer, said: “We are confirming our previous financial guidance for 2008. We believe that we have sufficient cash reserves to fund our currently planned business operations until approximately the end of 2010. We believe that our solid cash position gives us important flexibility as we seek to expand our pipeline.”
2008 financial guidance confirmed
The Company confirmed its previous financial guidance for 2008 as follows:
Revenues: Expected to be between € 5 million and € 7 million.
Expenses: Total expenses for 2008 expected to be below € 35 million.
Cash Burn: Current cash reserves expected to be sufficient to fund currently planned business operations until approximately the end of 2010. The cash burn for 2008 will include several one-time costs, including severance and other payments related to the corporate restructurings in 2007 and early 2008.
This guidance does not include any potential M&A or other major transactions, and, should such an event or events occur this year, the Company’s financial expectations could change significantly.
surf's up......crikey
